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McCormick & Company Inc (NYSE:MKC)
Days Inventory
104.82 (As of Aug. 2015)

McCormick & Company Inc's average inventory for the three months ended in Aug. 2015 was $733 Mil. McCormick & Company Inc's cost of goods sold for the three months ended in Aug. 2015 was $638 Mil. Hence, McCormick & Company Inc's days inventory for the three months ended in Aug. 2015 was 104.82.

MKC' s Days Inventory Range Over the Past 10 Years
Min: 84   Max: 101.6
Current: 102.66

84
101.6

During the past 13 years, McCormick & Company Inc's highest Days Inventory was 101.60. The lowest was 84.00. And the median was 90.25.

MKC's Days Inventory is ranked lower than
71% of the 1426 Companies
in the Global Packaged Foods industry.

( Industry Median: 66.21 vs. MKC: 102.66 )

McCormick & Company Inc's days inventory increased from Aug. 2014 (102.06) to Aug. 2015 (104.82). It might indicate that McCormick & Company Inc's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). McCormick & Company Inc's days sales of inventory (DSI) for the three months ended in Aug. 2015 was 63.09.

Inventory turnover measures how fast the company turns over its inventory within a year. McCormick & Company Inc's inventory turnover for the three months ended in Aug. 2015 was 0.87.

Inventory to revenue ratio determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. McCormick & Company Inc's inventory to revenue ratio for the three months ended in Aug. 2015 was 0.69.


Definition

Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

McCormick & Company Inc's Days Inventory for the fiscal year that ended in Nov. 2015 is calculated as

Days Inventory (A: Nov. 2015 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Nov. 2014 ) + Inventory (A: Nov. 2015 )) / 2 ) / COGS (A: Nov. 2015 )*Days in Period
=( (713.8 + 710.8) / 2 ) / 2559*365
=712.3 / 2559*365
=101.60

McCormick & Company Inc's Days Inventory for the quarter that ended in Aug. 2015 is calculated as:

Days Inventory (Q: Aug. 2015 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: May. 2015 ) + Inventory (Q: Aug. 2015 )) / 2 ) / COGS (Q: Aug. 2015 )*Days in Period
=( (738.5 + 727.2) / 2 ) / 638*365 / 4
=732.85 / 638*365 / 4
=104.82

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

An increase of Days Inventory may indicate the company's sales slowed.

1. Inventory can be measured by Days Sales of Inventory (DSI).

McCormick & Company Inc's Days Sales of Inventory for the three months ended in Aug. 2015 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=732.85/1059.9*365 / 4
=63.09

2. Inventory Turnover measures how fast the company turns over its inventory within a year.

McCormick & Company Inc's Inventory Turnover for the three months ended in Aug. 2015 is calculated as

3. Inventory to Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

McCormick & Company Inc's Inventory to Revenue for the three months ended in Aug. 2015 is calculated as

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Be Aware

A lot of business are seasonable. It makes more sense to compare Days Inventory from the same period in the previous year instead of from the previous quarter.


Related Terms

Cost of Goods Sold, Inventory, Revenue, Inventory Turnover, Inventory to Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

McCormick & Company Inc Annual Data

Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13Nov14Nov15
DaysInventory 85.4288.4784.0087.7488.9391.5693.5795.94101.00101.60

McCormick & Company Inc Quarterly Data

Aug13Nov13Feb14May14Aug14Nov14Feb15May15Aug15Nov15
DaysInventory 93.8490.03103.08100.69102.0697.02104.54106.46104.8296.46
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